the modern state as a suburban house lot

[alice wellintown]

Read the NYT and the WSJ, Barrons, an FT, and you can get a fairly
decent idea about how, from Nixon to W-Bush the home-owner in America
got into such a state. Or, one could read a business history that
recounts the horrid tale of the "Thrift" industry in America. Yes, if
we go back to the film, It's a Wonderful Life, we can get a good
start. From there we can see how the Institutions, B&L, S&L, Savings
Institutions that serve the working stiff (P notes that these lenders
were vital to Minorities), were dismantled.

In certain key markets such as California, savings associations or
institutions were the leaders in meeting the housing
finance needs of minorities and low-income persons and make such loans
at a higher rate than other depository institutions (when measured as
a percentage of assets).


For example, about 90 percent of all multifamily mortgage loans were
once provided by savings associations. Equally impressive, savings
associations were the primary lenders in low- and moderate-income
neighborhood. Savings Institutions, have much lower denial rates for
African-Americans and His- panics than any other type of lender.

Savings associations were leaders in originating and holding
adjustable rate mortgage loans (ARM's). Many mortgage bankers and
commercial banks were less likely  to originate ARM's because they are
more difficult to sell in the secondary market.
Nevertheless, ARM's are important because they often make housing
affordable for  first-time buyers, especially when long-term interest
rates are high.

Savings associations are also industry leaders in originating and
holding non-conformmg mortgage loans, that is, loans that have
transaction-specific terms that  do not conform to the standard
specifications of the secondary mortgage market.
Almost half of all mortgage loans held by savings associations are
nonconforming.  Many mortgage bankers and commercial banks have little
interest in making non- conforming loans, again, because they are not
easily sold into the secondary market.


The troubles, as we can see in the Film, Its a Wonderful Life, run
back to the Great Depression, but the Section 106 of the Bank Holding
Company Act Amendments of 1970 was when the Savings Institutions began
to act and look more and more like Commercial Banks.

Long and complex history, but Aunt Reet's plan for Larry, "get a lot
while you are young,"  only exacerbated a negative trend.

As usual, however, it is on the actions of the little guys under the
rocket's paranoia that P focuses. Jews & Nazis. Japanese & Blacks.

It ain't easy to defeat Banks and Wall Street, not if you all can't
even get along. But no worries. It will Fall on its own. It's a
Wonderful Life.

http://www.youtube.com/watch?v=ErrzjGCi3gY